David is considering opening a Fast $\text{'}n$ Clean Car Service Center. He estimates that the following costs will be incurred during his firstDavid is considering opening a Fast $\text{'}n$ Clean Car Service Center. He estimates that the following costs will be incurred during his first

year of operations: Rent $$9,200,$ Depreciation on equipment $$7,000,$ Wages $$16,397,$ Motor oil $$2$ per quart. He estimates that each

oil change will require $5$ quarts of oil. Oil filters will cost $$3\mathrm{.}00$ each. He must also pay The Fast $\text{'}n$ Clean Corporation a franchise fee of

$$1\mathrm{.}10$ per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil

changes as follows:

David anticipates that he can provide the oil change service with a filter at $$30\mathrm{.}01$ each.

$($a$)$

Your answer is incorrect.

Using the high$-$low method, determine variable costs per unit and total fixed costs. $($Round variable cost to $2$ decimal places, e$.$g$.$

$52\mathrm{.}75.)$

Variable cost $

per unit

Fixed cost $,$$

eTextbook and Media

Attempts: $1$ of $3$ used

$($b$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.

$($c$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.

year of operations: Rent $$9,200,$ Depreciation on equipment $$7,000,$ Wages $$16,397,$ Motor oil $$2$ per quart. He estimates that each

oil change will require $5$ quarts of oil. Oil filters will cost $$3\mathrm{.}00$ each. He must also pay The Fast $\text{'}n$ Clean Corporation a franchise fee of

$$1\mathrm{.}10$ per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil

changes as follows:

David anticipates that he can provide the oil change service with a filter at $$30\mathrm{.}01$ each.